(eToro Blog) Mario Monti, the Italian Prime Minister, has urged the E.U.’s leadership to recognize the efforts that the Italian government has made, as well as the sacrifices made by the Italian citizens, to fight the debt crisis which threatens to envelop the country. What he is asking for of the E.U. leadership is concessions, and he cites lower interest rates as one such concession being sought. The concern is that without policy changes from the E.U., the country could wind up in “the hands of populists,” many of whom are against the principles of the European Union. Mr. Monti believes that his success at restoring financial stability to Italy hinges on the E.U.

The Prime Minister has been drawing up plans to grow the country, despite a looming recession for the Eurozone. His goal is to restore competitiveness to the bloc’s third largest economy. Last week, he met with the French President to discuss his concerns, and later today he will be meeting with the German Chancellor for a similar discussion as it is seen as important that he gains Frances and Germany’s support to push through a united response. Later in the month, he is expected to present his agenda at the E.U. meeting of Finance Ministers as well as the E.U. summit.

While gaining support from his peers is critical, Mr. Monti is also keenly aware that investors’ support is also key. Recent auctions of Italian sovereign debt have been consistently and perilously close to the 7.0% threshold, which analysts deem as an unsustainable burden. On Friday, all eyes will turn to another Italian debt auction to gauge sentiment.

Earlier, the EUR/USD pair was lower at 1.2769, and sentiment on the OpenBook trading floor continues to be primarily bearish. The Euro will continue to be under pressure as the week unfolds, especially with the ECB meeting and Italy’s debt auction straight ahead. Word yesterday that Fitch’s credit rating agency was considering a downgrade for Italy is also negatively impacting the common currency.

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